Environcom (North West) Limited - Period Ending 2022-12-31
Environcom (North West) Limited - Period Ending 2022-12-31
Registration number:
Environcom (North West) Limited
for the Year Ended 31 December 2022
Environcom (North West) Limited
Contents
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Company Information |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Environcom (North West) Limited
Company Information
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Directors |
Mr Jonathan Andrew Parsons Mr Crispin John Stephenson |
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Registered office |
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Auditors |
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Environcom (North West) Limited
Directors' Report for the Year Ended 31 December 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is treatment and disposal of hazardous and non-hazardous waste
Going concern
In 2022 the Environcom group shown in consolidated accounts of Environcom Limited made an operating profit of £1,548,770 (2021 - £1,113,489). and has improved net current assets to £910,214 (2021 - £320,267). Total net liabilities have reduced to £4,651,989
(2021 – £5,995,652). Investor loans, accrued interest and FX provisions reduced to £7,763,753 in 2022 (2021 - £8,196,667). The directors have reviewed the business performance and are confident, based on the continued positive EBITDA performance into 2023, that the company will continue to deliver the profitability and cash requirements for the business in the future.
The directors have prepared profit and cash flow forecasts for the year ending 31 December 2025. These are dependent on securing the forecast inbound volumes of material to be recycled at the current pricing mechanisms.
The directors have reviewed the cash requirements of the business for the next twelve months and are confident that the company will generate sufficient cash to meet its liabilities when they fall due. The company is repaying, but still reliant on the loan finance previously provided by investors and new loans provided by the WEEE industry.
On this basis the directors consider the group has adequate resources to continue to meet its liabilities as they fall due. The financial statements have therefore been prepared on a going concern basis. The directors acknowledge however, that should the group not achieve the forecast results, they will be required to agree with the investors either an extension to the repayment of their loans, or additional loans to cover the working capital requirements. This indicates the existence of a material uncertainty which may cast uncertainty on the ability of the group and the company to continue as a going concern.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Directors' liabilities
The company maintains liability insurance for directors and officers as permitted by section 234 of the Companies Act 2006.
Disclosure of information to the auditors
Environcom (North West) Limited
Directors' Report for the Year Ended 31 December 2022 (continued)
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
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Environcom (North West) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Environcom (North West) Limited
Independent Auditor's Report to the Members of Environcom (North West) Limited
Opinion
We have audited the financial statements of Environcom (North West) Limited (the 'company') for the year ended 31 December 2022, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to the going concern paragraph in the directors’ report in the financial statements, which indicates that the group is reliant on C B Associates not recalling their debt in order to continue as a going concern. As part of the audit we have received written assurances that this debt will not be recalled within 12 months of approval of these financial statements – the going concern assessment period. However, these assurances are not legally binding.
The directors have forecast beyond this period and have stated that they intend for the group to continue trading indefinitely. However, as stated in the directors’ report, these events or conditions, along with the other matters as set forth in the directors’ report, indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Environcom (North West) Limited
Independent Auditor's Report to the Members of Environcom (North West) Limited (continued)
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included the following procedures: We have reviewed the current period financial records along with up to date information to look for indications of a threat to the ability of the group to continue as a going concern. We have also reviewed the calculations and assumptions of the directors’ forecasts to test their reasonableness.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit; or |
• | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Environcom (North West) Limited
Independent Auditor's Report to the Members of Environcom (North West) Limited (continued)
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our planning process:
•We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
•We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and Enivronmental legislation, health and safety and, employment law.
•We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
•Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
•Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
•Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
•Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to stock valuation.
•Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
•Testing key revenue lines, in particular cut-off, for evidence of management bias.
•Performing a physical verification of key assets , including stock.
•Obtaining third-party confirmation of material bank and loan balances.
•Documenting and verifying all significant related party [and consolidated] balances and transactions.
•Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.
•Testing all material consolidation adjustments.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Environcom (North West) Limited
Independent Auditor's Report to the Members of Environcom (North West) Limited (continued)
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For and on behalf of
Albion House
Pinchbeck Road
Lincolnshire
PE11 1QD
Environcom (North West) Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 December 2022
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Note |
2022 |
2021 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit/(loss) |
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( |
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Interest payable and similar charges |
( |
( |
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(24,670) |
(3,417) |
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Profit/(loss) before tax |
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( |
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Profit/(loss) for the financial year |
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( |
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Retained earnings brought forward |
79,256 |
117,533 |
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Retained earnings carried forward |
287,904 |
79,256 |
Environcom (North West) Limited
(Registration number: 06472943)
Balance Sheet as at 31 December 2022
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Note |
2022 |
2021 |
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Fixed Assets |
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Tangible Assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets/(liabilities) |
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( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and Reserves |
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Called up share capital |
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Retained Earnings |
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Shareholders' funds |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
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Environcom (North West) Limited
Statement of Changes in Equity for the Year Ended 31 December 2022
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Share capital |
Retained Earnings |
Total |
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At 1 January 2022 |
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Profit for the year |
- |
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At 31 December 2022 |
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Share capital |
Retained Earnings |
Total |
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At 1 January 2021 |
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Loss for the year |
- |
( |
( |
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At 31 December 2021 |
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Environcom (North West) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
The company has taken advantage of the exemptions available under FRS 102 paragraph 33.1A not to disclose intra-group trading as the subsidiaries are all wholly owned by Environcom Limited.
Going concern
The financial statements have been prepared on a going concern basis.
Judgements
The directors have made no material judgements or key estimates in preparing these financial statements. |
Revenue recognition
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax (VAT) and discounts.
Turnover is recognised when goods are dispatched or services supplied.
Government grants
Government grants are recognised on an accruals basis.
Environcom (North West) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Accounting policies (continued) |
Foreign currency transactions and balances
Foreign currency transactions are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.
Tax
Tax is recognised in the profit and loss account, except for items that are required to be accounted for directly through equity. In these instances, taxation would be recognised in equity also.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
•Deferred tax assets are only recognised if it is thought probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
•Any deferred tax balances are reversed if and when all conditions for retaining associated allowances have been met.
Tangible Assets
Tangible Assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Leasehold improvements |
25%-33% straight line |
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Plant and machinery |
10%-25% straight line |
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Fixtures and fittings |
25% reducing balance |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Environcom (North West) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Accounting policies (continued) |
Trade Debtors
Trade Debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade Debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of purchase cost and net realisable value, after making due allowance for obsolete and slow-moving stock. Costs includes all direct costs and an appropriate proportion of fixed and variable overheads.
Trade Creditors
Trade Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade Creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
The Company as lessee
Rentals paid under operating leases are charged to the profit and loss account on a straight- line basis over the lease term.
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding at each period.
Environcom (North West) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Accounting policies (continued) |
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
Once the company has paid its contributions it has no further obligations. Amounts unpaid at the period end are recognised as accruals. The assets and liabilities of the plan are held separately from the company in independently administered funds.
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Government grants |
The amount of grants recognised in the financial statements was £Nil (2021 - £
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
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Auditors' remuneration |
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2022 |
2021 |
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Audit of the financial statements |
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2022 |
2021 |
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Estimated money value of benefits in kind for non-audit services |
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Taxation
There is no charge to corporation tax in as the company has brought forward losses of £5,435,980.
The company has an unprovided for deferred tax asset of £1,442,374(2021 - £1,452,755) relating to losses carried forward and accelerated capital allowances. This has not been recognised as it is not certain that this asset will be utilised in the near future.
The unprovided for deferred tax asset has been calculated at 25%. This is the main rate of corporation tax with effect from 1 April 2023. Should the deferred tax asset be utilised it is expected that the company would realise the asset at this rate.
Environcom (North West) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Profit/loss before tax |
Arrived at after charging/(crediting)
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2022 |
2021 |
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Depreciation expense |
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Tangible Assets |
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Land and buildings |
Furniture, fittings and equipment |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 January 2022 |
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Additions |
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- |
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At 31 December 2022 |
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Depreciation |
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At 1 January 2022 |
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Charge for the year |
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At 31 December 2022 |
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Carrying amount |
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At 31 December 2022 |
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At 31 December 2021 |
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Included within the net book value of land and buildings above is £8,938 (2021 - £11,871) in respect of short leasehold land and buildings improvements.
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Stocks |
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2022 |
2021 |
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Raw materials and consumables |
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Finished goods and goods for resale |
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Environcom (North West) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Debtors |
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Current |
2022 |
2021 |
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Trade Debtors |
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Prepayments |
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Creditors |
Creditors: amounts falling due within one year
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Note |
2022 |
2021 |
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Due within one year |
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Loans and borrowings |
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Trade Creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
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Note |
2022 |
2021 |
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Due after one year |
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Loans and borrowings |
- |
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Owed to group undertakings |
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440,316 |
131,778 |
Environcom (North West) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Share capital |
Allotted, called up and fully paid shares
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2022 |
2021 |
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No. |
£ |
No. |
£ |
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2 |
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2 |
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Loans and borrowings |
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2022 |
2021 |
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Non-current loans and borrowings |
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Other borrowings |
- |
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2022 |
2021 |
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Current loans and borrowings |
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Other borrowings |
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Other borrowings
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The carrying amount of Amounts owed to group undertakings at year end is £440,316 (2021 - £119,207). |
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Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is